Grant scheme

Salix Finance / Public Sector Decarbonisation Scheme

The Public Sector Decarbonisation Scheme funds heat decarbonisation and energy efficiency in public sector buildings in England. Churches are not directly eligible, but church schools and buildings owned by local authorities may qualify.

At a glance

Provider: Salix Finance (on behalf of DESNZ)

Amount: Varies by phase, typically £100,000 to several million per project

What it covers: Replacement of fossil fuel heating with heat pumps or other low-carbon systems, building fabric improvements, and energy efficiency measures in eligible public sector buildings.

Deadline: Runs in phases. Check the Salix Finance website for the current phase and deadlines

Eligibility

The Public Sector Decarbonisation Scheme, delivered by Salix Finance on behalf of the Department for Energy Security and Net Zero, provides grants for replacing fossil fuel heating in public sector buildings across England. It is one of the largest decarbonisation funds available, but eligibility is limited to public sector organisations: local authorities, NHS trusts, universities and similar bodies.

Most churches cannot apply directly, because they are not public sector bodies. However, there are two routes worth exploring. First, church schools (voluntary aided or voluntary controlled) may be able to access the scheme through their local authority or academy trust. Second, a small number of church buildings are owned or managed by local authorities, and these may qualify. If your church falls into either category, the application would need to come from the public sector body, not the church itself.

For most parish churches, this scheme is background knowledge rather than a direct funding route. Its main relevance is that it is driving the market for heat pumps and low-carbon heating in large buildings, which in turn improves the supply chain and reduces costs for everyone, including churches, over time.

How to apply

Eligible public sector bodies apply through Salix Finance during open phases. Churches themselves cannot apply directly. A church building owned or leased by a local authority or public body, or a church school, should explore eligibility through that body.

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Official scheme website

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